NZ stocks: Market down as healthcare declares record profit

The New Zealand sharemarket fell slightly this afternoon, as another good result for Fisher & Paykel Healthcare sparked a run of profit-taking.

Healthcare dipped 8c to 375 despite announcing a 12 per cent first half profit lift to a record $31.6 million.

The benchmark NZSX-50 index was 10 points lower at 3324.61 at 5pm, while the NZSX-All capital index fell 1.98 points to 1016.70.

Matt Willis, a broker with ABN Amro, said Healthcare's result endorses "probably the best organic growth story on the market".

"The key to that result was the United States dollar revenue growth, recently upgraded to 25 per cent from 20 per cent," he said.

"They're still getting exceptional growth out of their core business in the US, which underpins what is a great story."

Shares in Healthcare shot up to 3.86 yesterday in anticipation of a good result.

"As a matter of course you've seen some profit-taking today," Mr Willis said.

The company today also said it stands to make a windfall if bird flu becomes a human-to-human pandemic.

Two years ago, severe acute respiratory syndrome (Sars) boosted profits at the respiratory products maker by millions and, if bird flu becomes a pandemic as many experts believe, it would likely reap far bigger gains.

Even without the bird flu scenario, it lifted its previous revenue forecast by US$5m ($7.4m) to US$195-200m for the full year.

Telecom was down 3c to 603 after rallying 12c yesterday on news rival Vodafone is losing market share, while TelstraClear on Tuesday announced it was not going to build a 3G network in New Zealand.

Mr Willis said that the top stock had clearly been consolidating the recent gains.

"Vodafone has historically been a fairly tough competitor, but it certainly looks like they are getting some market share off them," he said.

Other movers today included listed retirement home operator Ryman Healthcare Ltd -- "a beautiful business model" -- which today rose 10c to 505 after reporting a 54 per cent rise in its first half profit.

"Today's share price tells the story, given that the stock has had a very good run," he said.

"The fact that it's up on the day clearly reflects that the market is quite satisfied with the result.

The company posted a $17.1m profit in the six months to September 30 -- a new record -- and announced it expected to match that performance in the second half.

Fruit juice company Charlie's today rose 1.4c to 16 -- almost 10 per cent -- after announcing it is to rebrand its juices and launch new smoothies in a $500,000 nationwide marketing blitz beginning next week.

Other shares on the way up today included NZ Refining, up 23c to 535, Horizon Energy, rising 20c to 445, Fletcher Building, up 4c to 754, Feltex Carpets, up 2c to 54, Hellaby, rising 2c to 470, Tenon, gaining 2c to 360, and The Warehouse, up 2c to 414.

Elsewhere, shares in Richina Pacific were down 1c to 56c after it signalled its full year profit should beat last year's record US$8.2m ($12.11m) figure.

The former New Zealand investment company today posted a third quarter loss of US$234,000 on revenues of US$133.9m.

Also on their way down were Contact Energy, falling 11c to 655, Mooring Systems, down 5c to 365, Nuplex, down 4c to 410, and Waste Management NZ, losing 1c to 596.

On the market today, 27.1m shares were traded, worth $81.3m. Of the 149 stocks traded, there were 52 rises and 45 falls.

- NZPA